Senior economists Henrik Zipberg have warned that the current stock market may put the basis for one of the most disastrous incidents in history.
According to zeberg, the gathering, led by the S&P 500, is the “top of the explosion”, which is a sharp and fast high price that usually precedes the acute stagnation.
In x mail On July 2, Zabrag indicated that this last station of the gathering will be one of the “history books”, both in terms of its intensity and the severe economic repercussions expected to be followed.
Previously, Zipberg had expected the S&P 500 could climb more than the current levels, targeting the peak of about 6800 points in the short term. As of the time of the press, the index reached 6,219, an increase of 0.3 % a day and about 2 % during the past week.
“I think the top of the explosion is still continuing, and you see this in different markets around the world. <...> In reality [markets] I witnessed new levels at all after everyone refused in April, we can see it. Now we see, “it is He said.
He referred to a strong momentum throughout the global markets, many of which have recently reached its highest level, as evidence of the continuation of the upward trend.
However, while Zipberg is still optimistic in the short term, his long -term look is more dark.
Recession
The expert has warned that the explosive gathering will eventually be followed by the worst stagnation and the bear market since the thirties of the twentieth century, where the increasing economic stress in the United States is declining
“We are getting closer and more [to a recession]. There is more and more signs that the deterioration goes through. ”
Zebraj highlighted the depth of cracks in the housing sector and early signs of weakness in both the labor market and the broader real economy. He believes that these are early indications of a gradual deterioration that can accelerate soon.
The economist also expects this euphoria to collapse to the encrypted currencies before they also experience a major collapse.
His view comes within a year characterized by the fluctuation that is moved by the conflicts of commercial tariffs and geopolitical tensions.
With the effects of these opposite winds, the markets have responded positively, with the record index recorded several consecutive days of gains. The bullish momentum is expected to continue until July.
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